Digital Transformation in Banking Industry
The process of integrating digital technologies into all aspects of a business to meet the market demands and changing business requirements can be considered as one main aspect of Digital Transformation. The main objective of this transformation is to increase the effectiveness of business operations and customer experience. Organizations will have to invest in upgrading the systems, updating the processes, knowing the risk better and reduce the time to market.
To compete with digital natives, banks should provide an end-to-end digital experience to their customers by leveraging necessary technologies.
Why is digital transformation important?
Banks understand that Digital is the go forward!
A survey conducted by Deloitte has found that more than 22% of the customers use online services and mobile applications for financial transactions.
The below image is a survey that is conducted by BCG that also supports this hypothesis.
According to a survey conducted by Mckinsey across financial service executives across the world believe enhancing customer experience is the top priority for digital transformation projects, 76% of participants value investing in customers while 16% prioritizes productivity and operational cost reduction in digital transformation strategy.
Competition from Non traditional, technology giants
Tech Giants such as Google and Apple are making huge strides in financial services industry. Both of them (and Amazon) have payment gateways, Apple launched its credit card and Google is planning to introduce consumer bank accounts.
And there are a lot of digital native, new age digital first micro and macro lending fintech companies.
These companies and their obsession on customer and seamless integration of payments within customer journeys and more importantly existing customer dataTech Giants’ involvement in banking is threatening for banks because these companies have most individual’s data and are experts in digital transformation and data analytics.make it really difficult for traditional banks to compete Now that we’ve established the fact that banks are being pushed to take the digital transformation route, let us look at a few key processes that are helping with this journey .